Preliminary Exam in Strategic Management

This involves systematically gathering appropriate information for situation analysis, generating feasible alternative strategies, and rationally selecting the most appropriate strategy. It includes proactive search for new opportunities and a reactive solution to existing problems.

In this mode, top management first develops a reasonably clear idea of the corporation's mission and objectives. It is a fusion of strategy formulation and implementation. This approach appears useful when the environment is changing rapidly when is building consensus, and when resources are needed to be developed before committing the entire organization to a specific strategy.

This is characterized by reactive solutions to existing problems rather than proactive search for new opportunities. Strategy is fragmented and is developed to move a corporation forward incrementally. This mode lacks clarity and consensus on strategic goals and is only appropriate for dealing with complex and changing environment.

This states that one powerful individual makes strategy. This mode focuses on opportunities and growth, not business problems. Strategy is guided by the founder's vision of direction and is exemplified by large, bold decisions. The dominant goal of this mode is the growth of a corporation.

           

Strategic decisions are unusual and typically have no precedent, guidelines, or previous examples to follow.

Strategy decisions set precedents for lesser organizational problem and future actions throughout an organization.

. Strategic decisions commit substantial resources and demand a great deal of commitment from people at all levels.

Refers to a unique plan designed to achieve a competitive position in the market. It is also an interpretative plan that guides the organization to reach its goals and objectives.

Consists of analyses, decisions, and actions, an organization undertakes to create, implement, and sustain competitive advantages. In short, is the process that defines the organizations strategy.

Strategy management is concerned with the analysis on strategic goals (mission, vision, and strategic objectives) along with the internal and external environments of the organization.